Advertisements
Advertisements
Question
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es > 1
Advertisements
Solution
When the percentage change in quantity supplied is greater than the percentage change in price, then supply for such a commodity is said to be highly elastic. In such a case, Es > 1, and the straight line supply curve originates from the Y-axis, as shown in the following diagram.
RELATED QUESTIONS
Identify the elasticity of supply for the following with proper reasoning:
Perishable and durable goods.
A 10 per cent increase in price of a good causes 5 per cent increase in its quantity supplied, elasticity of supply will be ______.
When price of a·product rises by 10% its quantity supplied also rises by 10%. Find out price elasticity.
Which of the following measures of price elasticity shows elasticity shows elastic supply?
Elasticity of supply is measured by:
A linear supply curve starting from the origin making an angle of 75 degree with X-axis will have ______.
When is the supply of a commodity is called elastic?
Draw a straight line supply showing elasticity greater than one.
How is elasticity of supply measured according to the percentage method?
What is meant by inelastic supply?
